Nigeria’s external reserves have continued their steady upward trajectory, adding $540.28 million in the second half of October 2025 to reach $43.17 billion as of October 30, according to fresh data from the Central Bank of Nigeria (CBN). This represents a 1.3% increase within two weeks and a 1.8% month-on-month gain compared to the $42.40 billion recorded at the beginning of October.
The CBN data revealed that gross reserves maintained a consistent pattern of daily growth throughout the review period, culminating in the highest level of $43.17 billion by month-end. This marked a clear rebound from $42.63 billion on October 13, signaling renewed foreign inflows and strengthening market confidence in Nigeria’s external position.
Summary of Key Reserve Movements (October 13–30, 2025)
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Gross Reserves: Increased from $42.63bn to $43.17bn (+$540.28m)
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Liquid Reserves: Rose from $41.98bn to $42.55bn (+$579.62m)
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Blocked Reserves: Declined from $656.45m to $618.63m (–$37.82m)
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Blocked Ratio: Fell from 1.54% to 1.43%
Improved Liquidity and Decline in Blocked Funds
One of the most encouraging developments in the period was the rise in liquid reserves, which grew by nearly $580 million. This reflects a healthier balance of deployable foreign assets available to the CBN for trade settlements, external debt servicing, and monetary stabilization.
Simultaneously, blocked reserves—the portion of the reserves tied up in illiquid assets or pending obligations—fell by $37.82 million, reducing their share of total reserves from 1.54% to 1.43%. This shift implies a more efficient management of Nigeria’s foreign assets, freeing up liquidity for strategic interventions in the foreign exchange market.
The decline in blocked funds also indicates that the CBN has been gradually unwinding some of its previously committed assets, which enhances its ability to respond quickly to external shocks or currency pressures. Analysts note that this improvement contributes to greater confidence among investors and international trading partners.
Steady Inflows Reflect Renewed Market Confidence
Data from the CBN shows that between October 20 and 30, reserves surged by nearly $380.7 million, suggesting a steady increase in foreign exchange inflows from multiple sources. These inflows are believed to be driven by higher oil export receipts, strong remittance inflows, and renewed capital importation following recent market reforms.
The consistent daily growth of reserves also suggests a better balance between inflows and outflows, as the CBN continues to maintain a disciplined approach to foreign exchange management. The apex bank’s tighter monetary stance and enhanced transparency within the official FX window appear to be improving retention of export earnings and bolstering investor trust in Nigeria’s external management framework.
Market analysts argue that this trend points to growing international confidence in Nigeria’s economic outlook, supported by policy consistency and improving trade dynamics.
Analysts’ Views: A Stronger Outlook for Nigeria’s External Position
According to United Capital Research, the current buildup in Nigeria’s foreign reserves signals a broader improvement in macroeconomic stability and external resilience. The firm noted that as of September 30, 2025, reserves stood at $42.53 billion—the highest level in over three and a half years—driven by renewed foreign investment inflows and robust oil market performance.
United Capital analysts project that Nigeria’s reserves will continue to rise through the final quarter of 2025, supported by strong oil export earnings, healthy diaspora remittances, and a favorable trade balance. They estimate that the country now has over eight months of import cover, providing a substantial buffer against global financial volatility.
The firm also explained that the CBN’s reserve figures are based on a 30-day moving average, meaning the actual reserves may be slightly higher than the published numbers. This calculation method helps smooth out short-term fluctuations and better reflects the underlying growth trend.
United Capital further emphasized that the consistent accumulation of reserves improves Nigeria’s foreign exchange liquidity, reduces the need for heavy intervention in the FX market, and supports exchange rate stability. The analysts concluded that the combination of strong oil receipts, steady remittance inflows, and disciplined FX management places Nigeria in a stronger position to sustain its external balance going into 2026.
Outlook: Positive Momentum Into Year-End
The rise in Nigeria’s foreign reserves comes at a critical time, providing much-needed relief for the economy amid ongoing efforts to stabilize the naira and attract foreign capital. With external reserves now comfortably above $43 billion, the CBN has more flexibility to manage currency volatility and maintain investor confidence.
If oil prices remain stable and policy discipline continues, analysts believe Nigeria’s reserves could approach $44 billion by the end of 2025, marking one of the strongest reserve positions in recent years.
